1、2023 Complex Manufacturing Supply Chain Risk Report WTW Global Supply Chain Survey TABLE OF CONTENTSIntroduction and Key findings 03Market overview 04Risk landscape 06Risk management and resilience 09Survey sample and methodology 14About the surveyWhen:November-December 2022.Who:100 senior decision

2、makers,including risk managers,supply chain and logistics managers and CEOs.Where:Countries across Europe,North America,Asia-Pacific and Latin America.Size:All companies surveyed had annual revenue over$250 million.Find full details of our sample and methodology on page 14.The survey contained all c

3、losed questions with different response options ranging from ranking questions and multi-select to single coded questions.In this report,we have included some of the findings from the survey.For the full results,including breakdowns by region and job role,please contact us using the details on page

4、16.WTW Complex Manufacturing Supply Chain Risk Report/3Introduction For decades inventory has been the enemy of efficiency in manufacturing.With just-in-time systems,businesses could rely on globalized supply chains to deliver what they needed when they needed it without the need to hold buffer stoc

5、ks.But the disruption of recent years have exposed the vulnerability of those long supply chains,and patchy visibility beyond the first tiers of the chain.Its forcing companies to reassess everything from how and where they source components to how much they keep in stock.How are businesses adapting

6、?To find out how complex manufacturing sectors are navigating this changing landscape,we surveyed 100 risk and supply chain leaders from automotive to medical devices,industrial engineering to shipbuilding.How do they see the supply chain landscape?How are they building resilience?What are the main

7、challenges and risks they face?And what will the supply chains of the future look like?Five key findings60%said losses related to the supply chain had been higher or much higher than expected over the last two years.83%of businesses said they have made at least some improvements in their approach to

8、 supply chain management in response to the pandemic.78%agreed or strongly agreed that a lack of suitable alternative suppliers restricted their ability to implement an effective dual or multi-source strategy.82%cited a lack of insurance solutions among the greatest challenges to addressing their ri

9、sks over the next three to five years.74%named natural resources as the environmental factor posing the greatest supply chain risk to their business.4/WTW Complex Manufacturing Supply Chain Risk ReportUnderstanding the weak points in the supply chain Market overviewIn complex manufacturing,a single

10、component can have hundreds of moving parts and as many points of supply chain vulnerability.As product technology becomes more sophisticated,dependence on critical components becomes even greater.Companies were brought face to face with this reality during the pandemic,when a global shortage of sem

11、iconductors stopped production in many sectors.The impact rippled out to customers as waiting times for new cars increased dramatically and electronics such as games consoles were hard to find.Although the semiconductor shortage has recently eased,butterfly effects where the lack of small low value

12、components can have a big impact on production,are happening on a more regular basis.Businesses are also having to answer for the climate impacts of transporting parts and raw materials around the world and factor in the potential impact of climate change on supplier sites and locations.Learning the

13、 lessons of disruptionAgainst this backdrop,its not surprising that 60%of respondents said their losses related to supply chain risk were higher or much higher than expected over the last two years.More than a third(39%)agree or strongly agree that supply chain risks were building even before COVID-

14、19.However,disruption does appear to have galvanized the industry to take action.The vast majority(83%)of complex manufacturing businesses have either made some improvements in their approach to supply chain management in response to the pandemic,or completely transformed their approach.Collaboratin

15、g to reduce risks and lossesWhen asked about the greatest opportunities to improve supply chain management,improved strategic planning within their organization(55%)came top of the list came top of the list,followed by increased collaboration with suppliers(51%).This suggests firms favour working wi

16、th existing suppliers to better understand their supply chains and adjust sourcing strategies,given the difficulty switching suppliers in highly specialized manufacturing sectors.More than three quarters(78%)of businesses in our survey agreed or strongly agreed that a lack of suitable alternative su

17、ppliers restricted their ability to implement and effective dual or multi-source strategy.Single code questionBase:Complex Manufacturing(100)Q:Which of the following best describes the extent of your businesss supply chain risk-related losses in the last two years?Top 2 box(Net):Complex Manufacturin

18、g 60%Much higher than expectedHigher than expectedAbout what expectedLower than expectedMuch lower than expectedFigure 1:Supply chain risk-related losses in the last two years0%60%50%40%30%20%10%10%50%35%2%3%Q:Which of the following best describes what impact,if any,COVID-19 had on your organization

19、s approach to supply chain management?We have completely transformed our approach following the pandemic.We made some improvements to our approach following the pandemic.It did not change because we had other priorities.It did not change because we already had a robust approach in place.Figure 2:Imp

20、act of COVID-19 on approach to supply chain management 16%1%12%71%Single code question Base:Complex Manufacturing(100)WTW Complex Manufacturing Supply Chain Risk Report/5Q:Which of the following offer the greatest opportunities in terms of enhancing your supply chain management?Rank top 3Figure 3:Gr

21、eatest opportunities in terms of enhancing supply chain management0%Increased collaboration between you and your customersIncreased collaboration between you and your suppliersAvailability of more and higher quality dataHybrid and other new ways of workingMore sophisticated modelling70%60%50%40%30%2

22、0%10%55%44%51%42%45%38%25%“In recent years,weve seen a growth not only in the complexity of electronic and digitalized components,but also in the number and diversity of items needed to manufacture finished products,all of which are essential to keep production flowing.Shortages or delays in even th

23、e smallest or simplest of those items can hold up production.With just-in-time models and globalized sourcing,those dependencies have been increasingly stretched.The severity of the impact when things go wrong can be great,as many businesses experienced during the pandemic.These factors,as well as c

24、oncerns over geopolitical instability and the climate impact of long-distance transportation,are forcing a reassessment of current models.More businesses are considering a move away from globalized supply chains based on just-in-time towards regional supply chains based on just-in-case.But these are

25、 not easy choices.Finding new suppliers closer to home who can produce to the same standard and efficiency can be easier said than done.If firms take production of components back in house,it can take years for new manufacturing facilities to be up and running adding to cost and uncertainty.Other st

26、rategies were seeing to meet these challenges include closer internal collaboration on sourcing strategies between production and procurement departments,and also co-operation with tier 1 and 2 suppliers for example,holding joint business continuity planning exercises and better information sharing.

27、”Neil Charman WTW Manufacturing and Industrial Practice Group Leader Expert view:a gradual shift from global to regional supply chains Improved strategic planning within your organizationDigital transformationBase:Complex Manufacturing(100)6/WTW Complex Manufacturing Supply Chain Risk ReportRisk fac

28、tors are rising for complex manufacturers The more complex your manufacturing processes and components,the more potential there is for things to go wrong in your supply chain.Our survey found businesses are worried about a wide range of factors,from shortages and future pandemics to climate,geopolit

29、ics,cyber,sustainability and reputational risks.Climate and environment:half(50%)of respondents placed climate change and environment among the top global trends affecting supply chain risks.Manufacturers are feeling pressure to reduce and disclose emissions from production and transportation.Impact

30、s such as extreme weather and rising sea levels are also a concern at many supplier locations:natural disasters topped the list of supply chain factors believed to have the greatest impact in the next two years at 41%.Almost three-quarters(74%)named natural resources as the environmental factor posi

31、ng the greatest supply chain risk to their business,reflecting concerns over issues such as water availability.Risk landscape Geopolitical risk:was among the factors thought to have the greatest impact on supply chain risks,rated by 54%as medium and 29%high impact.Tensions between China and the West

32、 are calling the long term future of globalized supply chains into question.The Russia-Ukraine conflict is also having an impact,both on energy supply and sourcing of components such as wiring looms for cars,most of which were made in Ukraine.Gray zone aggression where states use non-military threat

33、s such as trade tariffs to penalize foreign companies are also an increasing concern,pushing organizations to look closely at where they locate their assets.Economic risks:economic uncertainty emerged as the biggest factor underlying supply chain risks,ranked by 33%among their top concerns.A volatil

34、e global economy is making it harder for many manufacturers to plan future production.Businesses are feeling the strain of price and wage rises,fuel and energy costs and falling consumer demand.However,if inflation dips back to near normal levels by the end of 2023,it could ease some of these pressu

35、res.WTW Complex Manufacturing Supply Chain Risk Report/7Shortages and disruption:the threat of supply chain disruption remains real for complex manufacturing businesses.Energy or other service interruptions(36%)was named as the second biggest supply chain factor expected to impact businesses over th

36、e next two years,followed by logistics and warehousing shortages(35%).Supplier capacity constraints(31%)and materials shortages(29%)were among the top underlying factors affecting supply chain risks.Cyber risks:concerns over cyber risks in the supply chain are growing.In our survey 50%rated cyber as

37、 having a medium impact on supply chain risks and 35%high impact.Growing digitalization and automation can increase the risks of cyber-attacks on suppliers.Increased risk may also come from greater data sharing and partners using linked systems,which can add potential weak spots for cyber criminals

38、to exploit.Attacks in the supply chain can lead to delays in ordering and delivery and potentially put manufacturer systems at risk.ESG and reputation:as well as meeting climate responsibilities,manufacturing is under regulatory and public pressure to source responsibly and sustainably.In our survey

39、 89%said sustainability was a key goal for their supply chain,while 81%said that ESG is a specific selection criterion when selecting new supply chain vendors.These concerns may also feed into perceptions of reputation risk:84%said reputation had either a medium or high impact on their supply chain

40、risks.Pandemics:though we may be past the acute disruptive impacts of COVID-19,the risk of a new strain of the virus,or a new unforeseen pandemic,seems to be still front of mind,topping the list of global trends with the greatest influence on supply chain risks at 58%.Figure 4:Global trends with gre

41、atest influence on supply chain risksQ:Which of the following global trends do you believe have the greatest influence on your organisations supply chain risk?Pandemics and other health-related factorsGeopolitical factorsClimate change and environmental factorsOnshoring and near-shoringAvailability

42、and cost of energyESGInflation58%40%50%35%47%35%35%0%50%40%60%30%20%10%Rank top 3Base:Complex Manufacturing(100)8/WTW Complex Manufacturing Supply Chain Risk ReportFigure 5:Potential impact of the following risks on the supply chain35%25%31%16%29%12%27%50%63%52%68%54%36%49%15%12%17%16%17%52%24%Q:How

43、 would you describe the potential impact of the following risks on the supply chain risks faced by your organization?HighMediumLow0%50%70%40%60%30%20%10%CyberEnvironmentalPublic LiabilityReputationGeopolitical riskErrors and omissionsNatural catastropheFigure 6:Supply chain factors having greatest i

44、mpact on business in next 2 yearsQ:Which of the following supply chain factors do you believe will have the greatest impact on your business in the next 2 years?Rank top 4 Base:Complex Manufacturing(100)Single code per optionBase:Complex Manufacturing(100)Natural disastersEnergy or other service int

45、erruptionsLogistics and warehousing shortagesJust-in-time operating modelsShipping container shortagesComponent or ingredient shortagesShortage of talentShortage of driversConstruction delaysRegulation changesRaw material shortagesTransport issuesCyber security41%36%35%33%33%33%33%31%30%26%25%22%22%

46、0%40%50%30%20%10%Figure 7:Factors playing greatest role in supply chain risksQ:Which of the following underlying factors do you believe to play the greatest role in your supply chain risks?Economic uncertaintySupplier capacity constraintsMaterials shortagesIncreased product complexityComponent short

47、agesInflation and rising costsIssues with shipping and/or other transportEnvironmental changeIncreased regulationLack of chain visibilityGeopolitical issuesData security issuesFailure to meet regulatory requirementsSupplier solvency and liquidity issuesLack of access to capitalNatural disastersSuppl

48、ier difficulties in attracting and retaining talent33%31%29%27%26%25%25%24%24%23%23%22%21%20%18%17%12%0%0%40%30%30%20%20%10%10%Rank top 4 Base:Complex Manufacturing(100)WTW Complex Manufacturing Supply Chain Risk Report/9Managing supply chain risk in complex manufacturing sectors is not easy.Supply

49、networks have become such an extensive and complex web that it can be difficult to get end-to-end visibility of the chain let alone to model all of the potential impacts and ripple effects if any one lower tier supplier were to fail.Taking action to improve robustnessOur survey suggests that busines

50、ses understand the scale of the challenge and are taking action to address their vulnerabilities.Almost two thirds(65%)say the investments theyve already made to improve resilience have somewhat improved the robustness of their supply chain,while 25%said robustness has greatly improved as a result.A

51、lmost 6 in 10(58%)say they plan to make significant changes in the next 12 months.The need for more accurate dataMore than 4 in 10(44%)named higher quality data and 38%more sophisticated modelling among their greatest opportunities to improve supply chain management.This indicates a desire to assess

52、 and quantify end-to-end supply chain risks if the right systems and tools were available.However,businesses face obstacles getting hold of all the data they need to achieve full visibility.More than two-thirds(69%)said they lacked the data and knowledge to understand their risks.While 54%said they

53、had identified the data they need to have,only 14%had robust processes to gather it.Lack of insurance is a roadblock The vast majority of respondents(82%)said a lack of insurance solutions was among the greatest challenges to addressing their supply chain risks.Recent supply chain disruption has mad

54、e insurers wary of writing contingent business interruption cover because they fear being exposed to hidden risks caused by lower tier suppliers about whom they know nothing.Less than a quarter(21%)feel confident they have sufficient insurance to cover the impact of extreme weather on their supply c

55、hain.This is concerning given the potential exposure to weather events,especially in longer global supply chains.Figure 8:Impact of previous investment to improve robustness in supply chainQ:How would you describe the impact of any previous investment you have made in improving the robustness of you

56、r supply chain?Greatly improved the robustness of our supply chainSomewhat improved the robustness of our supply chainNo change to robustness of our supply chainWe have not invested in the robustness of our supply chain25%65%10%Risk management and resilience Visibility and transparency are key to ad

57、dressing risksSingle code questionBase:Complex Manufacturing(100)10/WTW Complex Manufacturing Supply Chain Risk ReportUsing tools that map the logistics chain can help businesses start to understand where the information gaps are and begin to fill them.A total of 40%said using supply chain mapping s

58、oftware was among the measures that would have the greatest impact on managing risks.Figure 9:Greatest challenge to addressing risks over next 3-5 years82%69%45%45%58%Q:Which of the following will pose the greatest challenge to addressing your risks over the next 3 to 5 years?Rank top 3Base:Complex

59、Manufacturing(100)Lack of access to insurance and risk transfer solutionsLack of data,knowledge and understanding of these risksLack of budgetLack of internal risk management tools and insightLack of board buy-in0%100%80%60%40%20%Figure 10:Insurance for impact of extreme weather eventsQ:What best de

60、scribes your insurance for the impact of extreme weather events somewhere in your supply chain?Adverse weather somewhere in our supply chain could have a serious financial impact on our business and we have no insurance for thisWe have some cover for extreme weather events somewhere in our supply ch

61、ain,but not sure if it is sufficientWe have cover that ensures extreme weather somewhere in our supply chain would not have a serious impact on our business/financial results6%73%21%Single code quetionBase:Complex Manufacturing(100)WTW Global Energy Supply Chain Risk Report/11“Supply chain is rising

62、 up the risk agenda as companies wake up to the threat it poses to business continuity.Were seeing it more often at the top of risk registers.Some companies even have a separate supply chain risk register to give added focus to monitoring and mitigating risk factors in this area.Theres a growing rec

63、ognition among manufacturers of the need to increase supply chain resilience,whether thats through onshoring or near-shoring,multi-sourcing,holding more buffer stocks or moving from just-in-time to just-in-case inventory control.Companies are beginning to accept that there may be a cost to increasin

64、g resilience and to factor that into their business models.A good first step is to identify which suppliers would have a major impact on production and then quantify the impact if that supplier failed.Being able to see how the repercussions would ripple through your operations and finances can infor

65、m risk management strategy and help you make better decisions.Another option is to use tools such as digital twinning or WTWs Supply Chain Diagnostic to map and visualize your supply chain.This can help you explore the implications of a change of routes or suppliers on your risk profile and business

66、 performance.Although insurance for supply chain risks is limited,its worth exploring the options that are available.Think about the kinds of risks that could actually lead to claims and what level of exposure you want to cover.Then talk to your broker about how insurance can help you achieve that.W

67、here traditional insurance is not available,there may be alternative risk transfer options,such as retaining risk in a captive company,or parametric insurance for very specific risks with measurable triggers.”Frederick Gentile WTW Director of Risk EngagementExpert view:firms need to map and quantify

68、 risks to build resilience 12/WTW Complex Manufacturing Supply Chain Risk ReportSix steps to build your supply chain resilience1.Make resilience a boardroom priority:embed it in strategic planning and execution,with structured governance to ensure that decisions are made and acted on at the correct

69、level and the right time.This can be associated with existing business risk assessments.2.Reduce reliance on single suppliers and locations:relying on a single source for critical components and raw materials creates vulnerability.So can using multiple suppliers in the same geographic area.Wherever

70、possible,expand your network of suppliers and locations.3.Develop closer working relationships:working more closely with suppliers,especially at tier 1,can help you gain a better understanding of the wider chain and increase resilience.Being a partner rather than just a client can help overcome barr

71、iers to disclosing proprietary data.4.Reconsider just-in-time models:firms should develop a balance between just-in-time and just-in-case inventory levels to build contingency and strengthen physical assets to withstand climate events,and to provide support to distressed essential suppliers.5.Aim fo

72、r end-to-end visibility and transparency:supply chain mapping software tools allow businesses to get a more complete picture of all the relationships and flows in the supply chain,with live event-tracking to support proactive risk assessment and decision making.6.Stress test your response:use scenar

73、io planning and simulation modelling,such as digital twinning,to quantify the impacts and mitigate the effects of risks.Also consider red teaming to get an outside challenger view on policies and processes.WTW Complex Manufacturing Supply Chain Risk Report/13Complexity in manufacturing is about more

74、 than technology and processes.Its also the sheer number of moving parts that all need to be in the right place at the right time to keep production moving.The lessons of the last few years are pushing many sectors to move from a globalized just-in-time world to a more regional approach with greater

75、 buffers built into supply chain systems.That comes at a price and companies need to work out how far they want to build resilience at what cost to them and their customers.In managing these challenges,they also need to juggle external factors,from cyber threats to geopolitical instability,climate a

76、nd sustainability.Our survey suggests that businesses are working to overcome problems and considering a range of strategies to increase resilience.But theyre hampered by a lack of appropriate insurance solutions and the data needed to accurately assess and manage their risks.Working more closely wi

77、th customers and partners can help companies understand their supply chains better and address these risks.Diagnostic mapping and monitoring tools and analytics can help to visualize,quantify and assess risks across the chain and in specific locations.WTW has a highly experienced team specialized in

78、 supporting global,complex manufacturing organizations.We have the tools and competencies to help clients understand their supply chain risk exposures and produce customized risk treatment solutions.We can help you to:Assess,quantify and mitigate supply chain risks Manage and transfer risks for both

79、 property-related and pure economic losses Optimize risk financing and loss management Build greater resilience to future shocksConclusion:managing supply chain complexity14/WTW Complex Manufacturing Supply Chain Risk ReportSurvey sample and methodologyMethodology Phone to webSample size 100 Total:N

80、orth America(28)Europe(28)APAC(19)LATAM(25)Audience profile Senior decision makers of supply chain risk management in complex manufacturing companies with over$250m annual revenuesFieldwork dates November-December 2022Our survey was carried out by our partner Coleman Parkes research in November and

81、December 2022,using a mixture of phone interviews and web-based survey forms.We received 100 responses from senior decision makers in a range of industry sectors,based in Europe,North America,Asia-Pacific and Latin America.Study detailRoleCompany revenueDecision-makingAudience profileGeographyI am t

82、he key decision maker in terms of risk management and/or supply chain managementOver US$250mI am part of a team who are involved in decision making regarding risk management and/or supply chain management43%100%57%28%19%28%25%0%0%0%100%100%80%80%60%60%30%40%40%20%20%20%10%22%41%37%Supply chain manag

83、ement,including logistics functionRisk ManagementC-suiteNorth AmericaEurope LATAMAPAC WTW Complex Manufacturing Supply Chain Risk Report/15DisclaimerWTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates.For further aut

84、horisation and regulatory details about our WTW legal entities,operating in your country,please refer to our WTW website-https:/ It is a regulatory requirement for us to consider our local licensing requirements.The information given in this publication is believed to be accurate as at 1 March 2023.

85、This information may have subsequently changed or have been superseded and should not be relied upon to be accurate or suitable after this date.This publication offers a general overview of its subject matter.It does not necessarily address every aspect of its subject or every product available in t

86、he market and we disclaimer all liability to the fullest extent permitted by law.It is not intended to be,and should not be,used to replace specific advice relating to individual situations and we do not offer,and this should not be seen as,legal,accounting or tax advice.If you intend to take any ac

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88、ponsible for the accuracy of such.The views expressed are not necessarily those of WTW.Copyright WTW 2023.All rights reserved.For more information,please contact:Asia Graham Edwards Head of Sales&Client Management+65 6958 2925 Australasia Brent Lehmann General Manager Affinity and Commercial+61 3 86

89、81 9744 Europe Hugo Wegbrans Global Head of Broking+31 6 19274682 North America Christian Ryan North American Industry Leader South America Roman Mesuraca Regional Head of P&C&Broking-LatAm+54 11 4324 1195 UK Neil Charman Manufacturing&Industrial Practice Leader+44 20 3124 7995 Frederick Gentile Dir

90、ector of Risk Engagement+44 203 124 6000 Matt Gazeley Director-Client Relationship Management+44(0)203 124 6371 2023 WTW.All rights reserved.FPS4618811 WTW_88071/03/About WTWAt WTW(NASDAQ:WTW),we provide data-driven,insight-led solutions in the areas of people,risk and capital.Leveraging the global

91、view and local expertise of our colleagues serving 140 countries and markets,we help you sharpen your strategy,enhance organisational resilience,motivate your workforce and maximise performance.Working shoulder to shoulder with you,we uncover opportunities for sustainable success and provide perspective that moves you.Learn more at .